New Year’s Resolution: How to get on the property ladder in 2019

With the end of the year just days away, it’s no doubt that people are starting to look to the future, deciding what their new year’s resolution will be for 2019. For many people, the dream is to finally buy a home to call their own.

Ahead of the big day, we’ve outlined our top tips to help you get onto the property ladder in the new year!

Research schemes

If you can’t afford to buy a home the old-fashioned way, don’t be disheartened. Instead take some time to research the alternative ways you can get on the property ladder through schemes such as Shared Ownership and Help to Buy.

Shared Ownership, for example, enables you to purchase a share of a property; paying a mortgage on the share you own, and a below-market-value rent on the remainder. The deposits on Shared Ownership properties are also often much lower than those on outright sale homes as you’re generally only required to save a deposit of 5% of the share that you are buying, not on the full value of the property.

Understand your spending

Taking control of your finances is a vital step towards saving for a home, and understanding where your money goes is one of the first steps towards this. Make sure to review your spending habits well in advance in order to get a clear view of where your hard-earned cash is going and where you can start making cutbacks to help you save.

Get saving

While saving may be the most obvious aspect of getting onto the property ladder, it’s also one of the most important. Assess your financial situation and set yourself realistic targets for how much you could put into savings each month, ensuring that you take into consideration how much of your salary will be going towards your current bills.

Prepare for extra costs

When saving to purchase a home, many first time buyers will factor in money for the obvious costs including reservation fees and deposits. However, it’s vital that you’re aware of every expense that could come your way including legal fees, moving costs and valuation fees. Make sure to do your research beforehand and prepare your finances accordingly.

Know your credit score

Before getting a mortgage, Shared Ownership or otherwise, you will need to be credit checked. Therefore, it’s key that you evaluate your records in advance of applying for a mortgage and ensure that all information is accurate and up to date.

Your credit score can be the deciding factor in having your mortgage approved; if you haven’t already done so, it’s time to start paying down any debts, and be sure not to miss any payments on bills moving forward.

Calculate how much you can borrow

You can do this on Share to Buy’s Shared Ownership affordability calculator which can give you an indication as to whether a mortgage amount is likely to be considered affordable by mortgage lenders. Our calculator is even based on real-time results obtained from a range of mortgage lenders own calculators!

Find the right mortgage

While not all mortgage lenders will lend on Shared Ownership properties, a considerable number will. Take some time to research the variety of mortgages that are available for first time buyers who are buying a home through the part buy/part rent scheme.

You can also use the Share to Buy mortgage picker to find a suitable Shared Ownership mortgage; this will show you the schemes which you should be able to consider, subject to affordability calculations.